Scholastic Corporation (SCHL)
Debt-to-equity ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 0 | 0 | 0 | 7,300 | 210,600 |
| Total stockholders’ equity | US$ in thousands | 1,018,100 | 1,162,900 | 1,217,000 | 1,180,800 | 1,179,200 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.01 | 0.18 |
May 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $0K ÷ $1,018,100K
= 0.00
The debt-to-equity ratio for Scholastic Corporation has shown a consistent downward trend over the past five years, starting at 0.18 in May 2020 and decreasing to 0.01 in May 2021. Subsequently, from May 2021 to May 2024, the ratio remained at 0.00, indicating a significant reduction in debt relative to shareholders' equity.
A debt-to-equity ratio of 0.00 suggests that the company has either no debt or negligible debt in relation to its equity. This can be viewed positively by investors and creditors as it signifies a lower financial risk and a stronger financial position. It indicates that the company is relying more on equity financing rather than debt financing to fund its operations and growth.
Overall, Scholastic Corporation's decreasing debt-to-equity ratio indicates prudent financial management and a healthier balance sheet structure, which may enhance the company's ability to weather economic uncertainties and pursue future growth opportunities.
Peer comparison
May 31, 2024